French renewable energy company Voltalia says it has got the International Finance Corporation (IFC) to come on board to help arrange financing for the company's planned solar and storage project having 55 MW and 10 MW capacity respectively, in Africa's Malawi.
Voltalia says Dwanga Solar Project will sell energy generated to state-owned Electricity Supply Corporation of Malawi Ltd, under a 20-year long-term sales contract. This 'innovative' project represents almost 10% of the country's total installed capacity, according to the French developer.
Under a mandate signed by the duo, IFC will carry out a due diligence and explore the possibility of funding the Dwanga Solar Project.
"This project is strategic for Malawi and illustrative of the region where access to electricity is particularly difficult. We are proud to deliver on our local development mission with infrastructure that also improves the global environment," said Voltalia CEO Sébastien Clerc.
Both the partners also plan to explore further collaboration around renewable energy development in the countries where the IFC operates.
Malawi's total energy supply is more or less dependent on biomass, which according to the country's 2020 renewable energy strategy is unsustainably sourced resulting in widespread deforestation. A major chunk of the population is not connected to the national grid either. It targets to have access to affordable, reliable, sustainable, efficient and modern energy for all denizens by 2030.
By 2025, it aims for around 500 MW new renewables generation capacity on the system. According to the International Renewable Energy Agency (IRENA), Malawi's total installed solar PV capacity at the end of 2022 was an estimated 143 MW.
In March 2023, Serengeti Energy energized a 21 MW AC solar power plant in Malawi (see Africa PV News Snippets).